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As seen in a news article posted on SeattlePi:

“We don’t think it’s reasonable to assume we’re going to gain a lot of share from Google,” Chief Financial Officer Susan Decker said in an interview. “It’s not our goal to be No. 1 in Internet search. We would be very happy to maintain our market share.”

People say this is a sign of Yahoo giving up on the search market. But then there’s also this quote:

To boost revenue from each search, Yahoo! plans to make ads more relevant to search terms, meaning people will be more likely to click on them. Advertisers pay Yahoo! a fee when Internet users click on the ads.

Better ad relevancy is good for YPN publishers and for Yahoo’s revenues. I think this is a viable strategy. With YPN, Yahoo is competing with Google to get on individual websites or the so called “content network.” Although Google has the majority of the search market share right now, I wonder what’s the breakdown in terms of their revenues from ads displayed in search vs. content networks.

Although Yahoo is not targeting to be #1 as a search engine per se, they are still coming up with competitive products, a recent one being Yahoo Answers. (see my previous post) The other variable in the search engine arena is the role of Microsoft and how much they’ll dominate when adCenter and Vista is officially launched.

We’ll be watching…

Technorati Tags: Yahoo Publisher Network, YPN

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